Susan Meyer, owner/manager of Meyer\'s Motor Court in Key West, is considering o

Question

Susan Meyer, owner/manager of Meyer's Motor Court in Key West, is considering outsourcing the daily room cleanup for her motel to Duffy's Maid Service. Susan rents an average of 50 rooms for each of 365 nights (365 times 50 equals the total rooms rented for the year). Susan's cost to clean a room is S12.50. The Duffy's Maid Service quote is SI8.50 per room plus a fixed cost ofS25,000 for sundry items such as uniforms with the motel's name. Susan's annual fixed cost for space, equipment, and supplies is S61,000. Based on the given information related to costs for each of the options, the crossover point for Susan = room nights (round your response to the nearest whole number). If the number of room nights is less than the crossover point, then is the best option available to Susan. Based on the given room nights that Susan expects to rent (18,250), the best option is to .

Explanation / Answer

Answer:- Room rent 50*365 =18250

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